In today’s briefing:
- Aircraft Leasing 101 – Heralding the Golden Era
- What Oct US SEMI Equipment and Sep SIA/WSTS Global Sales Tell Us?
- HBM’s Impact on DRAM Revenues
Aircraft Leasing 101 – Heralding the Golden Era
- This report explains the nuts and bolts of the aircraft leasing industry in a simple manner, along with its opportunities, risks, and business outlook.
- We are in a golden era, underpinned by strong global traffic recovery, and supply shortage due to technical and manufacturer snafus. Airlines are also increasingly struggling to access credit.
- AerCap Holdings NV (AER US) is our top pick on its superior business profile and attractive valuation, the second choice is BOC Aviation (2588 HK).
What Oct US SEMI Equipment and Sep SIA/WSTS Global Sales Tell Us?
- SEMI reports Oct front/back end equipment billings decline of 14% and 18% y/y, respectively, which was improved from 18% and 24% y/y decline in September, implying early signs of recovery.
- WSTS/SIA earlier reported September sales of US$44.89bn, up 1.9% m/m and down only 4% y/y (vs. 16% decline in June), suggesting semi sales y/y improvement and pass the cycle trough.
- We are positive on SOX INDEX likely to break new high of over 4,000 in six months and expect PC/smartphone/training AI semi and DRAM semi/equipment vendors to outperform in short.
HBM’s Impact on DRAM Revenues
- HBM DRAM, used for GPUs in AI, has enjoyed stable pricing while other DRAM prices have collapsed
- This has attracted the attention of all DRAM makers, but SK hynix has a first-mover advantage
- Although increased competition will reduce HBM prices, it will have little impact on GPU maker margins
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